Digi International Inc (DGII)

Cash conversion cycle

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	129.95	140.96	159.59	160.51	161.24	155.44	139.26	123.99	129.49	112.92	122.22	136.35	147.42	139.12	126.78	118.01	128.59	107.38	112.75	118.97
Days of sales outstanding (DSO)	days	50.78	45.95	42.22	42.20	48.09	47.43	62.38	72.99	56.35	51.73	49.77	54.77	66.05	77.41	72.55	109.39	116.44	81.01	64.17	76.43
Number of days of payables	days	32.07	32.49	41.05	40.05	60.98	68.72	63.10	54.64	57.11	58.07	48.72	50.16	60.50	75.72	59.73	47.50	62.87	57.20	41.70	39.52
Cash conversion cycle	days	148.66	154.41	160.76	162.66	148.34	134.15	138.54	142.35	128.72	106.58	123.27	140.96	152.97	140.81	139.61	179.90	182.16	131.18	135.22	155.88

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 129.95 + 50.78 – 32.07
= 148.66

The cash conversion cycle of Digi International, Inc. has shown fluctuations over the past eight quarters. In Q2 2022, the company had a relatively low cash conversion cycle of 144.69 days, which increased to 151.16 days in Q1 2023. The cycle peaked at 165.71 days in Q2 2023 before slightly decreasing in subsequent quarters.

Overall, Digi International's cash conversion cycle has ranged from 136.91 days to 165.71 days over the past eight quarters. This indicates that the company's cash is tied up in operations for an average of around 150 days before being converted back into cash through sales. Investors and analysts may closely monitor this metric to assess the efficiency of the company's working capital management and its ability to convert inventory and receivables into cash.